Decarbonization and energy transition: Iberostar's progress

Announced this week, the power purchase agreement (PPA) with ACCIONA guarantees 100% renewable electricity for Iberostar's hotels in Spain, headquarters, and World2Meet travel division, and is part of a suite of hybrid solutions to achieve decarbonization, driving positive change in the industry.

Dedication to climate action is an essential part of Iberostar's business evolution toward a more responsible tourism model. A model that seeks to care for people and the planet, while continuing to build a business that leaves a positive legacy. To achieve this, the company is advancing its decarbonization journey with a comprehensive and ambitious approach to energy use, joining forces and combining diverse strategies to find innovative solutions that drive positive change.

A cornerstone of this approach is the supply of renewable energy. Iberostar is gradually increasing the use of renewable energy in all its hotels through power purchase agreements (PPAs) and guarantees of renewable origin (GoOs). Public-private collaboration is crucial to achieving this goal, as demonstrated by the power purchase agreement with ACCIONA, which will provide 100% renewable electricity to Iberostar hotels in Spain, its headquarters, and its World2Meet travel division. Thanks to this agreement, Iberostar is making progress in reducing emissions generated by its electricity consumption, which represents more than two-thirds of its energy consumption. In this way, the company is moving closer to its goal of driving the energy transition in the tourism sector.

Another key lever of the decarbonization plan is increasing renewable energy capacity in destinations where access to clean energy is limited. It is important to adapt to the reality of each region and seek energy solutions for destinations where signing energy agreements or acquiring guarantees of origin is not possible. In 2023, a photovoltaic plant was installed at the Iberostar Rose Hall Resort in Jamaica, guaranteeing an on-site renewable energy supply.

The energy approach focuses on developing a hybrid system that combines different solutions. Iberostar is diversifying its energy sources and investing in innovation. In collaboration with Redexis, it is planning the installation of the first green hydrogen fuel cell for cogeneration at the Iberostar Bahía de Palma hotel in Mallorca. Green hydrogen is a promising solution for reducing greenhouse gas emissions, especially in destinations with challenges in the supply of renewable energy.

On its path to carbon neutrality, the company is also reducing its consumption of fossil fuels. The hotel's main uses of fossil fuels are concentrated in heating and hot water production, kitchen equipment, transportation, and laundry. A key part of its strategy is to transform these uses and replace them with electric or energy-efficient alternatives. For example, Iberostar is replacing boilers with high-efficiency heat pumps, while also electrifying kitchen equipment.

The electrification of hotels and the use of renewable electricity bring Iberostar closer to its goal, validated by the SBTi initiative, of reducing its Scope 1 and 2 emissions by 85% by 2030. However, much remains to be done, especially regarding Scope 3 emissions, which represent 77% of its global footprint.

The company's commitment goes beyond the energy transition. Iberostar is focused on optimizing consumption through energy savings and waste reduction measures, aiming to reduce energy consumption by 35% by 2030. Employees are key to achieving these goals, so Iberostar is working closely with its teams at all locations to incorporate good energy practices. It is also investing in high-efficiency equipment and improving the performance of existing equipment, significantly contributing to its energy reduction goal.

“At Iberostar, our goal is to continue promoting responsible tourism and inspire the tourism sector to contribute to climate action. By showcasing this case study for change, we hope to inspire others to take similar steps. By sharing the journey we've taken so far, we seek to demonstrate that it's possible to transform business models and move toward a better future. We know we'll encounter challenges along the way, but I'm very proud of the approach and strategy we've established to overcome them. Together.”

Source: Iberostar Group.